1373 Smith Street

1373 Smith Street, North Providence, RI is an established men’s recovery residence located in North Providence, Rhode Island. The property is a certified NARR Level II Recovery Residence serving men in recovery from substance use disorder and has a stable operating history under an established recovery housing operator.

The building contains approximately 4,559 square feet and supports a service capacity of 28 recovery housing beds. The current bed mix includes 1 private bed and 27 shared beds. The property is operated as structured recovery housing and is positioned as a stabilized behavioral healthcare real estate asset with long-term income potential.

The property was the subject of a loan request memorandum prepared for the acquisition of the leased behavioral healthcare facility. The memorandum identifies the property as a stabilized asset with a multi-year operating history, a first-mortgage collateral profile, and a clear long-term recovery housing use.

Lease and Income Structure

The property is subject to a long-term absolute triple-net lease. The lease began on August 1, 2023 and has a 20-year term, with annual lease payments of $145,800. Under the absolute NNN structure, the tenant is responsible for real estate taxes, insurance, and capital items, leaving limited ongoing expense obligations for the owner.

The memorandum projects facility net operating income of $143,600 after a modest owner allocation for legal and tax expenses. Based on an 8.00% capitalization rate, the memorandum supports an imputed value of $1,795,000 for the property.

This structure may be attractive to buyers seeking a passive or low-maintenance income-producing asset backed by a mission-critical recovery housing use.

Recovery Housing Use

The property is operated as a men’s recovery residence and certified as a NARR Level II Recovery Residence. Recovery housing serves individuals in recovery from substance use disorder by providing a structured, substance-free living environment that bridges the gap between clinical treatment, correctional reentry, and independent living.

Residents typically live semi-autonomously while following house rules, attending meetings, participating in recovery activities, and receiving support through the home’s accountability structure. The memorandum describes recovery housing as a congregate living model that helps reduce relapse risk and support long-term recovery.

Investment Opportunity

This offering is best positioned as a stabilized, long-term recovery housing investment. The key investment strengths include an established use, certification, a 20-year absolute NNN lease, predictable lease revenue, and minimal landlord obligations.

Unlike a vacant property or speculative conversion, 1373 Smith Street already has a recovery housing use and operating structure in place. The buyer’s diligence can therefore focus on lease performance, property condition, certification status, tenant strength, and long-term real estate fundamentals rather than creating the use from scratch.

The memorandum notes that appraisers familiar with recovery residence facilities commonly use the income approach because of the predictability of lease payments and the operational stability provided by a well-established tenant. It also identifies recovery housing valuation ranges as generally falling within a capitalization rate range of 7.4% to 7.9%, depending on tenancy strength, lease terms, and market conditions.

Location and Market Context

North Providence is a mature Rhode Island community with access to employment, healthcare resources, transportation, public services, and regional recovery supports. The property’s location supports its continued use as recovery housing by placing residents near the community infrastructure that can help support recovery, employment, and reintegration.

The home’s existing recovery housing use, 28-bed service capacity, and long-term lease structure make it a specialized behavioral healthcare real estate asset rather than a typical residential investment.

Key Property Details

• Address: 1373 Smith Street, North Providence, RI
• Purchase Price / Imputed Value: $1,620,000
• Property Type: Recovery housing / behavioral healthcare real estate facility
• Building Size: Approximately 4,559 sq. ft.
• Total Beds: 28
• Current Use: Men’s recovery residence
• Certification: NARR Level II Recovery Residence
• Lease Structure: Absolute NNN lease
• Lease Start Date: August 1, 2023
• Lease Term: 20 years
• Annual Lease Payment: $145,800
• Net Income: $145,800
• Valuation Cap Rate: 9.00%
• Tenant Responsibilities: Real estate taxes, insurance, and capital items under the NNN lease

Buyer Fit

This property may be well suited for a passive real estate investor, mission-driven buyer, behavioral healthcare real estate investor, 1031 exchange buyer, nonprofit-aligned purchaser, or investor seeking a long-term income-producing asset with minimal landlord obligations.

The opportunity is especially relevant for buyers who want exposure to recovery housing real estate without directly operating the home. With a certified recovery residence, a long-term absolute NNN lease, established operations, and a defined income stream, the property offers a combination of stability, social impact, and long-term cash flow potential.

A buyer should still conduct careful diligence on tenant performance, lease terms, certification status, zoning and fair housing considerations, property condition, life safety systems, and any planned capital improvements.